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Dispute Settlement
September 23, 2002
WTO Panel Cases to which Canada is a Party
Canada - New Zealand/US - Measures Affecting the Importation of Milk and the Exportation of Dairy Products
Chronology: Canada-United States-New Zealand WTO Dairy Dispute
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March 25, 1998
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A WTO dispute settlement panel is established following two separate GATT Article XXII consultations: November 19, 1997 between Canada and the United States; January 28, 1998 between Canada and New Zealand.
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March 17, 1999
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The Final Report of the WTO Panel is released. The Panel finds Canada's exports of dairy products under Special Milk Classes 5(d) and 5(e) to be subsidized. The Panel recommends to the Dispute Settlement Body that Canada be requested to bring its practices into conformity with its obligations.
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July 15,1999
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Canada files its notice of appeal.
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October 13, 1999
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The WTO Appellate Body Report is released. The Appellate Body upholds Canada's appeal with regards to its administration of Canada's tariff rate quota for fluid milk. It also finds that the Panel had ruled correctly when it concluded that Canada's exports of dairy products under Special Milk Classes 5(d) and 5(e) to be export subsidized.
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December 22, 1999
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Implementation consultations conclude with an agreement outlining a timetable and implementation steps that Canada will follow to bring its dairy export and import practices into conformity with the WTO Appellate Body and Panel decisions.
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During 2000
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Canada provides regular Implementation reports to the WTO Dispute Settlement Body on June 8, July 13, September 14, October 12, November 6 and November 30.
Consultations are held with New Zealand and the United States on February 23, May 18, June 22/23, October 2 and December 7/8. During these consultations, Canada updates New Zealand and the United States on the implementation of the WTO Appellate Body and Panel decisions. Statistical reports are provided on Special Classes 5(d) and 5(e) permits and exports for butter, cheese, skim milk powder and other milk products. Both the United States and New Zealand indicate that there are irreconcilable differences regarding what is necessary for Canada to bring itself into compliance with its WTO obligations.
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January 31, 2001
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The implementation period for Canada to comply with the WTO Panel and Appellate Body decisions ends.
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February 9, 2001
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Consultations held with United States and New Zealand in Geneva do not resolve the dispute.
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February 16, 2001
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Both New Zealand and the United States submit requests to the WTO Dispute Settlement Body for a Compliance Panel and to suspend the application of tariff concessions provided to Canada (covering trade in the amount of US$35 million, total US$70 million).
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February 28, 2001
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Canada opposes the suspension of tariff concessions and requests that the matter be referred to an Arbitration Panel. The arbitration process is suspended pending the outcome of the Compliance Panel/Appeal process.
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March 1, 2001
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The WTO Dispute Settlement Body establishes a Compliance Panel to review Canada's implementation of the WTO "Dairy" decisions.
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May 29-30, 2001
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A WTO Compliance Panel hearing is held in Geneva.
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July 11, 2001
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The public report of the WTO Compliance Panel is released. The Compliance Panel finds Canada's commercial export milk to be subsidized. The Panel recommends to the Dispute Settlement Body that Canada be requested to bring its practices into conformity with its obligations.
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September 4, 2001
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Canada files its notice of appeal.
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October 26, 2001
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A WTO Appellate Body hearing is held in Geneva.
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December 3, 2001
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Appellate Body of the WTO submitted its report, in which it found that the United States and New Zealand failed to prove that Canada's approach to commercial export milk is WTO inconsistent. The report is then presented to the Dispute Settlement Body for adoption.
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December 18, 2001
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Although the Appellate Body report was adopted by the WTO, the U.S. and New Zealand continue to maintain that Canada is in breach of its WTO commitments and requested another Compliance Panel.
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February 18, 2002
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The WTO Dispute Settlement Body established a second Compliance Panel to review Canada's implementation of the WTO "Dairy" decisions.
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April 22-23, 2002
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A WTO Compliance Panel hearing is held in Geneva.
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June 24, 2002
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Compliance Panel of the WTO submits its confidential report.
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September 23, 2002
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Canada files its notice of appeal.
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Updated on September 23, 2002
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